Flood Relief Package: Ahmedabad Traders To Get Cash Assistance, Low-Interest Loans for Flood-Hit Ahmedabad Traders

Following severe rainfall that inundated commercial hubs across the Ahmedabad district and municipal corporation limits, the Gujarat government has stepped in with a comprehensive financial rehabilitation package. The state cabinet on Wednesday approved immediate direct cash relief and interest-subsidised term loans for affected street vendors, cabin owners, and brick-and-mortar shopkeepers, mirroring a similar relief drive executed in Surat.

Announcing the decision, Cabinet Minister and State Spokesperson Jitu Vaghani emphasised that the state views Ahmedabad as Gujarat’s commercial heartbeat and is committed to putting small businesses back on their feet swiftly.

Lump-Sum Cash Relief for Vendors and Small Traders

To provide immediate respite to informal and small-scale business owners, the rehabilitation package outlines tiered lump-sum cash payouts. Eligibility will be assessed through ground surveys supported by photographic and videographic evidence of flood-induced loss.

• Street Handcart Vendors (Lari-Rekdi): Eligible for a lump-sum cash relief of ₹7,500.

• Small Stationary Cabins (Up to 40 sq ft): Eligible for ₹25,000 in cash assistance.

• Large Cabins (Exceeding 40 sq ft): Eligible for a lump-sum payout of ₹50,000.

• Permanent Brick-and-Mortar Shops: Store owners who have filed their GST return for the previous quarter are eligible for ₹1,00,000 in immediate cash assistance.

Term Loans and Interest Subsidies for Established Businesses

For larger, permanent establishments that faced heavy operational disruptions, the state government has arranged a credit scheme through banks and financial institutions. Affected shopkeepers holding valid GST filings can avail of term loans accompanied by a 7% interest subsidy for up to three years.

The interest subsidy structure is divided into three slabs based on turnover:

• Monthly Turnover up to ₹7.5 Lakh: Interest subsidy of 7% per annum on term loans up to ₹20 lakh (capped at a total interest benefit of ₹5 lakh over 3 years).

• Monthly Turnover between ₹7.5 Lakh and ₹15 Lakh: Interest subsidy of 7% per annum on term loans up to ₹25 lakh (capped at a total interest benefit of ₹8 lakh over 3 years).

• Monthly Turnover Exceeding ₹15 Lakh: Interest subsidy of 7% per annum on term loans up to ₹30 lakh (capped at a total interest benefit of ₹10 lakh over 3 years).

Application Guidelines and Key Rules

Business owners must choose between the direct lump-sum cash grant or the interest-subsidised term loan, as the policy allows applicants to benefit from only one option.

For traders opting for the interest-subsidised loan, applications must be submitted within six months from the official date of the package resolution.

Furthermore, commercial units that have already drawn relief under the Agricultural Produce Market Committee (APMC) assistance scheme will not be eligible to claim benefits under this new rehabilitation package.